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What kind of documentation do I need to sell my business?

Embarrassed to say, but my books and other paperwork are a bit disorganized. I'm trying to get organized again in preparation for a sale. Yeah, hard times here too.

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Answers (2)
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The BAF Group LLC
MD

Depending upon the size, the type and the kind of assets contained in your business, a full due diligence package can contain forty (40) items or even much more. But those only deal with what will be required once you have a Buyer under contract. NEVER get talked into giving your Client Lists. And in the initial stages of your sale, the only thing I would add to Terry Snyder's comments are a copy of any Lease for your office or store, and Inventory for any Fixtures, Furnishings and Equipment (FF&E) that may convey. This last part is not essential to start, but depending upon how much of this you have, it can be a pain in the neck to get together at the end; so it is good to at least be aware, and be in position to start the process early on. It is also a good idea to know how to convey or escape liability for your space Lease and any equipment you may have under lease. These can be problematic.

Apr 3, 2009
Terry Snyder
IM&M Solutions
WI

Following is a list of information that you will nedd to properly prepare your business for sale:
P&L Statements and Balance Sheets for the last three years
Latest interim financial statements
Corporate Tax Returns for at tleast three years
A list of assets to be included in the sale
A list of assets to be excluded from the sale
Schedule of all indebtedness of the business
Copies of any patents, copyrights, contracts etc.
Legal description of any real estate included
Any employment contracts, rep agreements, etc.
Copies of pension and/or profit sharing plans
Copies of insurance policies
Accounts receivable aging reports
Up to date inventory information
List of any ongoing contracts for services to be assumed
Marketing brochures, ads, articles
I hope that this helps to get you started and good luck in your transaction.

Apr 3, 2009